ECGS supports Ethos refusal to approve the remuneration system of Novartis put to the vote at the annual general meeting of the company to be held on 22 February 2011. The variable remuneration of executive management appears too high compared to the fixed remuneration and incentive plans are not described in sufficient detail to allow the establishment of a clear link between remuneration received and achievement of pre-defined performance targets.

ECGS provided some comments to the recent E.C. consultation on Legal Certainty of Securities Holdings and Disposition, greeting the action of Brussels aiming at improving the legal framework for investment management and the protection of investors.

Proxinvest, Managing Partner and responsible for the French market within ECGS, publishes a summary of remuneration practices in French listed companies and calls for the increase of the shareholder voice on the remuneration issue by the introduction of the "Say On Pay" principle in France.

The higher representation of women on the boards of listed companies is a corporate governance issue that is also taking on significantly greater importance for both companies and shareholders in Germany.

Only 7.2 percent of all shareholder representatives on the supervisory boards of the 30 largest listed German companies (the DAX 30) are women. Compared to other industrialised countries, Germany is a ‘poor performer’. But what are the reasons for this?

It was finally revealed on October 22 that LVMH had rolled over equity swaps on Hermès International stock price and, at the final settlement, decided to ask for shares up to 14% and soon 17% of the French most prestigious fashion and leather goods house. LVMH had thereby a wise tactic to hide its buying position using tax heaven countries subsidiaries with the excuse of a an efficient treasury management at work, in the end a perfectly legal process! Hermès International saw this as an unfriendly venue and requested LVMH withdrawal...

ECGS (European Corporate Governance Service) announces its full support to the UK Stewardship Code for institutional shareholders published in July 2010.

ECGS believes that the Stewardship Code principles should not only apply to UK based institutional investors but also to institutional investors outside the UK. For this reason, ECGS intends to promote the Stewardship Code with international clients in order to ensure their adherence to its principles.

On the basis of the development of vote advisory service businesses since European Corporate Governance Service (ECGS) was established, one founder member, PIRC, ceased its involvement with ECGS on a basis agreed by all ECGS members from 30 of September 2010, and PIRC’s role will be assumed by continuing members. ECGS, an international partnership of independent local experts will continue to provide a high quality service for institutional shareowners.

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ECGS is a joint venture of independent local market experts which have come together to provide specialist governance assessments and informed proxy voting advice, offering institutions access to unrivalled experience on corporate governance and responsible investment issues.